HMV is once again calling in the bankers and accountants to sort out the mess it has made out there on the high street, with the administration process putting the jobs of the chain's 2,200 workers at risk and the entire business under threat of closure or, perhaps worse, purchase by Sports Direct.
After Administration I in 2013 the reconfigured chain was apparently "very profitable" by 2014 thanks to shedding debts and unprofitable branches, although the ongoing troubles faced by the UK's high streets and the rise of streaming film services appear to have to put an end to that good run. The chain's current boss bizarrely singled out the collapse in DVD sales as a contributing factor, saying the market for discs plummeted by 30 per cent year on year this Christmas, as even the nation's grandads now have access to Netflix and Amazon for all their TV box sets of old.
Paul McGowan from HMV and owner Hilco used the administration announcement to have a go at the government for taxing the high street into surrender to the online distributors, explaining: "Business rates alone represent an annual cost to HMV in excess of £15m. Even an exceptionally well-run and much-loved business such as HMV cannot withstand the tsunami of challenges facing UK retailers over the last 12 months on top of such a dramatic change in consumer behaviour in the entertainment market." [Guardian]